WP Engine Issues Cease-and-Desist Letter to Automattic Over "Cancer to WordPress" Remark
WP Engine, the leading WordPress hosting service, has taken legal action against Automattic after CEO Matt Mullenweg made disparaging remarks about the company. In a cease-and-desist letter, WP Engine demands that Automattic retract its comments and cease making negative statements.
The letter accuses Mullenweg of threatening WP Engine with a "scorched earth nuclear approach" if they did not pay a large sum of money to Automattic before a recent summit. When WP Engine refused to comply, Mullenweg allegedly spread false claims about the company.
Furthermore, Automattic has been pressuring WP Engine to pay a significant portion of its revenues for the use of trademarks like "WordPress." WP Engine maintains that their use of the WordPress trademark is legitimate under fair use laws.
Mullenweg, who co-created WordPress, criticized WP Engine for profiting without adequately contributing to the open-source project. He highlighted the disparity in contributions to the "Five for the Future" initiative, where WP Engine's efforts fall short compared to Automattic's.
It is important for investors to note the ongoing dispute between WP Engine and Automattic, as it could potentially impact the financial performance of both companies. The legal battle and public accusations could lead to a loss of trust among customers and investors, affecting the reputation and value of the companies involved. It is crucial to monitor developments in this situation closely to make informed investment decisions.